Burlington Stores Delivers Strong Q1 2025 Results, Navigates External Uncertainty

Burlington Stores, Inc. has reported a solid fiscal first quarter (Q1) 2025 operating performance, with total sales growing by 6% on top of 11% growth last year. Despite flat comparable store sales (comps), the company's earnings before interest and taxes (EBIT) margin increased 30 basis points, driving an 18% rise in adjusted earnings per share (EPS).

Speaking during a recent conference call to discuss Q1 results, Michael O'Sullivan, Chief Executive Officer of Burlington Stores, highlighted two key drivers of the company's ahead-of-plan earnings performance. Firstly, there was some timing favorability between Q1 and Q2, mostly related to receipts, which is expected to flip around in Q2. Secondly, the company began aggressively pursuing margin and expense savings opportunities across the profit and loss (P&L) statement in early Q1, capturing some of these savings during the first quarter.

Looking ahead to the rest of the year, Burlington Stores reaffirmed its full-year comp sales and earnings guidance, which remains flat to up 2% for both metrics. The company feels good about its ability to achieve this guidance, subject to a few key assumptions that will be outlined by Chief Financial Officer Kristin Wolfe later in the call.

However, O'Sullivan noted that the level of external uncertainty has increased over the last couple of months, citing two major drivers: the impact of import tariffs and the state of the consumer. While disruptions to supply often turn out well for off-price retailers like Burlington Stores, the company believes the potential impact of tariffs is more complex and carries greater risk than other types of disruption.

The initial effect of tariffs announced in early April was to effectively shut down the flow of merchandise from China, presenting a challenge for the retail industry as a whole. Despite this uncertainty, O'Sullivan expressed confidence in Burlington Stores' ability to navigate these external factors and continue delivering strong results.

Burlington Stores has consistently demonstrated its resilience in the face of external challenges, leveraging its off-price business model to capitalize on disruptions and excess supply. With a solid foundation in place, the company is well-positioned to drive growth and deliver value for its shareholders in the quarters ahead."